Section 8 Fair Market Rent (FMR) for ZIP 28216 - 2027

Investment Score for ZIP 28216

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,620
1 Bedroom	$1,690
2 Bedrooms	$1,840
3 Bedrooms	$2,250
4 Bedrooms	$2,860
5 Bedrooms	$3,318
6 Bedrooms	$3,716
7 Bedrooms	$4,013
8 Bedrooms	$4,214

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,840	$231,423	0.8%	D
3BR	$2,250	$305,780	0.74%	D
4BR	$2,860	$375,973	0.76%	D
5BR	$3,318	$462,945	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28216 (Charlotte, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Charlotte, NC, in ZIP code 28216 is set by HUD for the year 2026. According to the data provided, the FMRs are as follows: - 0BR: $1550 - 1BR: $1620 - 2BR: $1780 (which is 32.5% of the median household income) - 3BR: $2190 - 4BR: $2780 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent. However, the actual rental market in 28216 may present challenges for voucher holders. The FMR for a 2BR unit is $1780, which is significantly lower than the Zillow median price for a 2BR home, which stands at $233,485. This suggests that the rental market is likely much higher than the FMR, making it difficult for voucher holders to find suitable housing. The Price-to-FMR ratio of 10.9x indicates that the median home value is nearly 11 times the FMR for a 2BR unit. This high ratio implies that the rental market is likely inflated relative to the FMR, and voucher holders may struggle to find properties that accept their vouchers at these rates. #### Affordability & Renter Profile In ZIP code 28216, the population is 57,507, with 49.1% being renters. This means there are approximately 28,196 renters in the area. The occupancy rate is 93.8%, indicating a relatively tight rental market where most units are occupied. Given that the median household income is $65,795, and the FMR for a 2BR unit is 32.5% of this income, the market appears to be moderately affordable for those who earn close to the median income. However, the high Price-to-FMR ratio of 10.9x suggests that the rental market is not aligned with the FMR, and many renters may face affordability issues. The median household income is not sufficient to cover the median home values in the area, which could lead to a significant portion of renters struggling to find affordable housing. This mismatch between income levels and rental costs highlights the potential for a challenging environment for low-income renters. #### Investor Angle From an investor perspective, the ZIP code 28216 presents both opportunities and challenges. The FMRs provide a guideline for what HUD considers fair rent for various unit sizes. However, the actual rental market may be higher due to the tight occupancy rate and the inflated median home values. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates versus the FMR. If the actual rental rates are higher than the FMR, then an investor relying solely on Section 8 vouchers would face a negative cash flow. For example, a 2BR unit with an FMR of $1780 might have a market rental rate well above this figure, leading to financial strain for investors. The investment grade in this area would depend on the ability to attract tenants who do not rely solely on Section 8 vouchers. Investors should consider the broader rental market dynamics and the likelihood of finding tenants willing to pay market rates. Additionally, the high occupancy rate suggests that there is demand for rental units, but the challenge lies in aligning supply with the FMR guidelines. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should aim to acquire properties where the rental rates are below the FMR. For instance, a 2BR unit priced at $1780 or less would be ideal for attracting Section 8 voucher holders without risking negative cash flow. This strategy requires careful selection of properties that are undervalued or located in areas with lower demand. 2. **Consider Mixed-Income Properties**: Given the high Price-to-FMR ratio, investors might benefit from developing mixed-income properties. By offering a range of units at different price points, including some at or below FMR, they can cater to both Section 8 voucher holders and other renters who can afford higher rates. This approach helps balance the risk and ensures a steady stream of income. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help investors understand the demand for Section 8 units and potentially secure contracts or agreements that ensure a steady flow of voucher holders. This can mitigate the risk of vacancy and provide a more predictable income stream. #### Bottom Line Given the high Price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 28216 is to **Hold**. While there is significant demand for rental units, the challenge of finding properties that align with FMR guidelines makes it risky to invest heavily in this area. Instead, investors should focus on maintaining existing properties that already meet the FMR criteria and explore opportunities for mixed-income developments to balance the risk. ### Summary ZIP code 28216 in Charlotte, NC, has a robust rental market with a high occupancy rate, but the actual rental rates are likely much higher than the FMR. This creates a challenging environment for Section 8 voucher holders and investors alike. The median household income is $65,795, and the FMR for a 2BR unit is $1780, representing 32.5% of the median income. However, the Zillow median price for a 2BR home is $233,485, resulting in a Price-to-FMR ratio of 10.9x. This suggests that the rental market is inflated relative to the FMR, making it difficult for voucher holders to find affordable housing. Investors should focus on acquiring properties with rental rates below the FMR and consider mixed-income developments to balance the risk. Engaging with local housing authorities can also help secure a steady flow of tenants. Overall, the recommendation is to hold investments in this area until more favorable conditions arise or until strategies are implemented to better align with the FMR guidelines.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.